CITY OF PALMDALE. REPORT to the Mayor and Members of the City Council from the City Manager

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1 CITY OF PALMDALE REPORT to the Mayor and Members of the City Council from the City Manager DATE: SUBJECT: May 4, 2016 Adopt Resolution No. CC , a Resolution of the City Council of the City of Palmdale regarding the acquisition of a property within the City (APN ) by entering Agreement No. A-5473, a Chapter 8 Agreement sale with the County of Los Angeles. ISSUING DEPARTMENT: Public Works SUMMARY Issues: Shall the City Council adopt Resolution No. CC , a resolution to acquire a property within the City (APN ) by entering Agreement No. A- 5473, a Chapter 8 Agreement sale with the County of Los Angeles? Recommendation: Staff recommends that the City Council adopt Resolution No. CC , a resolution to acquire a property within the City (APN ) by entering Agreement No. A-5473, a Chapter 8 Agreement sale with the County of Los Angeles. Fiscal Impact: Entering Agreement No. A with Los Angeles County to purchase APN through a Chapter 8 Agreement sale will cost the City a projected amount of $4, This amount will be deducted from the Casa Verde Lift Station Elimination Project account, account no. U , with an available budget of $724, BACKGROUND In an effort to reduce the maintenance and operation costs of the City of Palmdale's sanitary sewer collection system, the Casa Verde Lift Station Elimination Project (Capital Improvement Project No. 647) will provide for the decommissioning and demolition of the aging Casa Verde Lift Station. This will be accomplished by constructing a new sanitary sewer mainline that will assume the wastewater processed by the lift station and transport it eastward by gravity to a connection point with the existing system. Due to limited space and conflicting underground utilities in the street

2 Report to Mayor and Council Re: Approval of Resolution No. CC May 4, 2016 Page 2 right-of-way, including high-pressure gas mains and storm drain structures, the optimal alignment requires sections of the new pipe be installed within the boundaries of two adjacent properties on the south side of Spanish Broom Drive. The property to the west is owned by the City of Palmdale, but the property to the east, APN , must be acquired prior to construction. APN is privately owned, however the property has been in tax-default since Due to the nonpayment of property taxes, the Los Angeles County Treasurer and Tax Collector designated the property as "subject to power to sell" and may offer the property for sale via public auction. In accordance with the provisions of Division 1, Part 6, Chapter 8 of the California Revenue and Taxation Code (CA R&TC), the City can purchase this property from the County prior to auction by entering Agreement No. A-5473, known as a Chapter 8 Agreement sale. The City dispatched a letter indicating interest in acquiring the property, and the County approved the potential purchase as a valid Chapter 8 Agreement sale based on the City's intended use of the property; specifically, for public benefit in the form of the elimination of an aging sewage lift station. The purchase price is projected to be $4,591.15, the amount equal to the taxes owed to the County at the time of agreement execution. After Agreement No. A is executed by the City and County, the agreement sale must be reviewed and approved by the California State Controller to ensure compliance with the CA R& TC. Acquisition of the property is in conformance with the City's General Plan and categorically exempt from CEQA review. Additionally, the property is eligible for title insurance. It is recommended that the Council adopt Resolution No. CC to allow for the acquisition of APN by entering a Chapter 8 Agreement sale, Agreement No. A-5473, with the County of Los Angeles. Submitted by: Reviewed by: Lynn Glidden Capital lmproveme? ~ram Mgr Mi&Uir- Director of Public Works Attachments: 1. Resolution No. CC Agreement No. A-5473

3 CITY COUNCIL CITY OF PALMDALE, CALIFORNIA RESOLUTION NO. CC A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE TO ACQUIRE A SINGLE PROPERTY WITHIN THE CITY (APN ) BY ENTERING A CHAPTER 8 AGREEMENT SALE WITH THE COUNTY OF LOS ANGELES WHEREAS, the City has determined that the acquisition of the property shown in Exhibit "A" and Exhibit "B", identified as APN , described as Lot 169 of Tract 44813, located in the City of Palmdale at the southwest corner of the intersection of Spanish Broom Drive and Zinnia Street, and hereto known as the "Property!}, is necessary to permit the construction of a new sanitary sewer mainline within the Property that will allow for the elimination of an aging sewer lift station, in accordance with the objectives of the Casa Verde Lift Station Elimination Project (Capital Improvement Project Number 647); and WHEREAS, the City has expressed intere acquiring the Property pursuant to a Chapter 8 Agreement sale with the C Los Angeles and reviewed and evaluated the proposed acquisition as Lift Station Elimination Project (Ca i ry action to complete the Casa Verde vement Project Number 647); and WHEREAS, the City has een notified by the County of Los Angeles that the Property has been in tax-default since 2006 and has been deemed "Subject to Power to Selr' by the County for nonpayment of property taxes; and WHEREAS, Division 1, Part 6, Chapter 8 of the California Revenue and Taxation Code permits the City to acquire the Property prior to a public auction by entering a Chapter 8 Agreement sale with the County of Los Angeles; and WHEREAS, the County of Los Angeles has determined that the acquisition of the Property by the City of Palmdale via a Chapter 8 Agreement sale for the intended purpose of eliminating the Casa Verde Lift Station is pursuant to the provisions of Division 1, Part 6, Chapter 8 of the California Revenue and Taxation Code; and WHEREAS, the purchase price of the Property due to the County of Los Angeles is the amount equal to the defaulted property taxes owed to the County at the time of the Chapter 8 Agreement sale finalization; and WHEREAS, a preliminary title report recently completed indicates Lawyers Title Company is prepared to issue a policy of title insurance on the Property; and

4 Resolution No. CC Page 2 of =-WHEREAS, the acquisition of the Property is in conformance with the City of Palmdale General Plan and is Categorically Exempt from CEQA review. NOW THEREFORE~ BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS: SECTION 1. Following the approval of this resolution the City shall enter a Chapter 8 Agreement sale with the County of Los Angeles to purchase the taxdefaulted Property for the purpose of eliminating the Casa Verde Lift Station at a purchase price equal to the amount of defaulted property taxes owed to the County. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this day of, by the following vote: AYES: ABSTAIN: ~ABSENT: ATTEST: James C. Ledford, Jr., Mayor Rebecca J. Smith, City Clerk Approved as to form: w Ditzhazy City Attorney

5 Resolution No. CC Page 3 of 4 EXHIBIT"A" THE HIGHLIGHTED PARCEL IS SITUATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 169 OF TRACT NO , IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1122, PAGES 1 TO 12 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ASSESSOR'S PARCEL NUMBER

6 Resolution No. CC Page 4 of 4

7 Agreement No.: A- 5~73 AGREEMENT TO PURCHASE LOS ANGELES COUNTY TAX-DEFAULTED PROPERTY (Publicff axing Agency} This Agreement is made this day of, 20_, by and between the Board of Supervisors of Los Angeles County, State of California, and the City of Palmdale of Los Angeles County ("Purchaser~~), pursuant to the provisions of Division 1, Part 6, Chapter 8, of the Revenue and Taxation Code. The real property situated within said county, hereinafter set forth and described in Exhibit A attached hereto and made a part hereof, is tax-defaulted and is subject to the Tax Collector's power to sale by said county for the nonpayment of taxes, pursuant to provision of law. It is mutually agreed as follows: 1. That as provided by Section 3800 of the Revenue and Taxation Code, the cost of giving notice of this agreement shall be paid by the PURCHASER. 2. That the PURCHASER agrees to pay the total purchase price listed for each real property described in Exhibit A within 14 days after the date this agreement becomes effective. Upon payment of said sum to the tax collector, the Tax Collector shall execute and deliver a deed conveying title to said property to PURCHASER. 3. That the PURCHASER agrees that the real property be used for the public use specified on Exhibit A of this agreement. 4. That if said PURCHASER is a taxing agency, as defined in Revenue and Taxation Code section 121, it will not share in the distribution of the payment required by this Agreement. APPROVED AS TO FORM: MARY C. WICKHAM County Counsel By Deputy County Counsel Rebecca J. Smith, City Clerk If all or any portion of any individual parcel listed in Exhibit A is redeemed prior to the effective date of this agreement, this agreement shall be null and void only as it pertains to that individual parcel. 3791, , 3793 R& T Code Revised AGREEMENT NUMBER 2747

8 Agreement No.: A- 5tf13 The undersigned hereby agree to the terms and conditions of this agreement and are authorized to sign for said agencies. ~ ATTEST: City of Palmdale By (Seal) Title ATIEST: BOARD OF SUPERVISORS, COUNTY OF LOS ANGELES By Acting Executive Officer-Clerk of the Board of Supervisors By Chair of the Board of Supervisors By Deputy (Seal) This agreement was submitted to me before execution by the Board of Supervisors and I have compared the same with the records of Los Angeles County relating to the real property described therein. Los Angeles County Tax Collector Pursuant to the provisions of section 3795, the State Controller approves the foregoing agreement this day of BETTY T. YEE CALIFORNIA STATE CONTROLLER By: Karen Garcia, Manager Property Tax Administration & Government Compensation 2 AGREEMENT NUMBER 2747

9 EXHIBIT A Agreement No.: A REAL PROPERTY DESCRIPTION AND PURCHASE PRICE ~0 :i~~,::~~~~~~;t;;~~r: ~ami"~~!:-i~l~'fsfs;~i~~~~1:ti! ~li:~e~~:-!"~~!:?::~t~~~r :{ ~.~~o&sm~ Rmlmf't~ ~~:~:i~~~~t~~ ::~::'e:o~,~::=~~~~.~ Supervisorial District 5th Location CITY OF PALMDALE Address VAC/COR ZINNIA(18E)/AVE S Assessor's Parcel No Legal Description: TR=44813 LOT 169 Agreement Number 2747 First Year of Delinquency 2005 Default Year 2006 Purchase Price $4,591.15* Purpose of Acquisition REPLACE AGING SEWER PUMP STATION. *The purchase price quoted on this Exhibit A is a projection of the purchase price for a schedule of nine months. In addition, the following costs related to the sale will be added to the purchase price: Cost of Notification, Cost of Publication, Cost of Postage, Noticing and Recording Fees, Title Report Fee and State Fee. If the agreement is completed in less than the nine month projection time, then the purchase price will be decreased; however if the completion of the agreement is longer than the nine month projection time, the price will increase accordingly. 3 AGREEMENT NUMBER 2747